The Bottom Falls Out Of The European Consumer

Financial markets are doing well both on the equity and debt
front. Germany's engine is revving again. PMI data hit its lowest level in 8 months.

But as always, the biggest risk in Europe is, well, how long will
the people tolerate recession? How long can they handle dismal
growth.

New data from
Eurostat provides a really depressing snapshot of the state
of the consumer, at least as of October.

In October 2012 compared with September 2012, the volume of
retail trade fell by 1.2% in the euro area (EA17) and by 1.1% in
the EU272, according to estimates from Eurostat, the statistical
office of the European Union. In September, retail trade
decreased by 0.6% and 0.2% respectively. In October 2012,
compared with October 2011, the retail sales index fell by 3.6%
in the euro area and by 2.4% in the EU27.